The Devil's Chessboard

by David Talbot

  As the war began, the struggle to save Europe’s Jews was far from over. President Roosevelt continued to be pushed and pulled by both sides of the increasingly tumultuous refugee debate. Initial reports about the mass evacuations of Jews to death camps in the German and Polish countryside were vague. The State Department bureaucracy bottled up much of the information, so there was a great deal that Roosevelt never saw. Humanitarians like Rabbi Wise desperately sought solid evidence of the Nazi extermination machine, which they knew was essential in order to convince FDR to take decisive action.

  This was the desperate situation as Dulles began monitoring European developments—first from his OSS office in Rockefeller Center and later from his post in Bern. Among Dulles’s confidential sources was a German industrialist who was the first prominent figure inside the Nazi domain to provide credible information about the early stages of the Final Solution. The stories that the industrialist brought across the Swiss border were almost too monstrous to believe. The information that began flowing into neutral Switzerland, the listening post for war-torn Europe, should have helped force drastic Allied action. But it did not.

  On July 17, 1942, Heinrich Himmler’s luxurious private train—equipped with a dining room, shower, and even a screening room—pulled into Auschwitz, a backwater town in the swampy flatlands of southern Poland. Word quickly spread about the Reichsführer’s unusual visit, soon reaching Eduard Schulte, the chief executive of a major German mining company with property in the area. What had brought Himmler to this forlorn destination? Schulte reckoned that it must have something to do with the rapidly expanding prison camp outside town, where IG Farben had built a factory to utilize the camp’s slave labor.

  It is not widely recognized that the Nazi reign of terror was, in a fundamental way, a lucrative racket—an extensive criminal enterprise set up to loot the wealth of Jewish victims and exploit their labor. The chemical giant Farben was at the forefront of integrating concentration camp labor into its industrial production process, with other major German corporations like Volkswagen, Siemens, and Krupp following closely behind. Himmler’s SS empire moved aggressively to cut itself in on the spoils, extracting sizable payments from these companies for providing them with a steady flow of forced labor. Schulte, who was afraid that the rapidly expanding Auschwitz complex would begin to intrude on his own company’s mining properties, immediately took a wary interest in Himmler’s visit.

  Schulte himself was not a Nazi, but he had good contacts in those circles. His deputy at the mining firm belonged to the Nazi Party and, in fact, knew Himmler. To ingratiate themselves with the party, the firm’s board of directors had loaned the local Nazi chief a company-owned villa that was located in a nearby forest. It was here that Himmler and his entourage were to be entertained that evening.

  When Himmler arrived for the party at the company villa, Schulte was still unaware of the horrific reason he had come to Auschwitz. Himmler was there to witness one of the camp’s new gas chambers, a white brick cottage known as “Bunker 2,” in action. That afternoon Himmler watched as a group of 449 Jewish prisoners, recently transported from Holland, were marched into Bunker 2 and gassed with Zyklon B, the pesticide produced by IG Farben. The execution process took a full twenty minutes, and the victims’ frantic death cries could be heard even through the chamber’s thick walls. Afterward, the bodies were dragged from the building by camp orderlies wearing gas masks and thrown into nearby incinerators. One of the triumphs of German engineering was to devise a convenient incineration process whereby the burning of the corpses provided the heat for the furnaces. Fritz Sander, the engineer who invented the system, later lamented the fact that he could not patent his creation because it was considered a state secret.

  Himmler observed the grotesque procedure unfold that afternoon in “total silence,” according to Auschwitz commandant Rudolf Höss. Later on, at the villa, he showed little strain from his day’s chores. The Reichsführer broke from his austere routine by enjoying a cigar and a glass of red wine. In deference to the female guests, the details of his camp tour were not discussed.

  Eduard Schulte was sickened when, a week and a half after Himmler’s visit, he finally learned what had occurred during the Reichs-führer’s tour of Auschwitz. It confirmed his deepest fears about the Third Reich, a regime he had observed from its earliest days with a growing sense of dread. Schulte had met Hitler in Berlin back in February 1933 at a gathering of industrialists whom the Nazis wanted to shake down for political contributions. After listening to his rambling diatribe, Schulte concluded that Hitler was a dangerous lunatic who would lead Germany to ruin.

  There was nothing rebellious or offbeat about Schulte. He was, in nearly every way, a typical specimen of the German bourgeoisie—a hardworking, conservative family man whose only indulgence was a passion for hunting. But he was the type of man who resented the steady encroachments of the Nazi state on his private life. In order to keep his position with the mining firm, he had been forced to join the Nazi-run German Labor Front. Even to maintain his hunting habit, he needed to belong to a state-run hunters club. He fumed when his two boys came home one day in Hitler Youth uniforms, though his wife reminded him it was compulsory and said he was making mountains out of molehills. But in Schulte’s mind, the “brown poison,” as he called it, was seeping everywhere.

  It pained Schulte, who had a close Jewish friend while growing up, to see Jews being made scapegoats. He was a tall, outgoing, assertive businessman, but he had a feeling for the underdog that might have been reinforced by his own physical disability. At the age of eighteen, while going to the aid of some railroad workers, Schulte’s left leg was crushed under the wheel of a freight car and had to be amputated. Outfitted with an artificial leg, he continued to get around with vigorous determination for the rest of his life, although with an obvious limp.

  When Schulte heard about the unfolding horror at Auschwitz, he knew he had to act. From what he could piece together, the macabre display of German efficiency overseen by Himmler that day was part of an official policy of mass extermination that was now under way in the Nazi empire. The policy had been formally approved earlier that year by the Nazi high command at a conference held on January 20, 1942, in an SS villa on Lake Wannsee in suburban Berlin. The Wannsee Conference, run by Himmler’s ambitious deputy Reinhard Heydrich, laid out a plan for the elimination of Europe’s Jewry through a network of death factories. By lending the proposal a legal veneer, Heydrich assured the complete administrative cooperation of the German bureaucracy. Even the title assigned to the program of mass butchery—the Final Solution—conjured a civil servant’s dream of a job well done.

  Heydrich, who called himself “the chief garbage collector of the Third Reich,” saw his gas ovens as a humane solution to the “Jewish problem.” He considered himself a cultured man. The night before he was assassinated by Czech partisans, who threw a bomb into his open car as it slowed for a hairpin curve, Heydrich attended a performance of a violin concerto written by his father, Richard Bruno Heydrich, a highly regarded German opera singer and composer.

  The Final Solution was meant to remain secret, with most of the death camps located in remote outposts of the Nazi empire. But as the systematic killing got under way, many people became aware of the mounting barbarity. One day in early 1942, an IG Farben official named Ernst Struss was returning home on a train after inspecting the company’s factory that was affiliated with Auschwitz. A German worker also riding on the train began talking loudly about the nightmare at the camp. Great numbers of people were being burned in the compound’s crematoria, he said. The smell of incinerated flesh was everywhere. Struss jumped up in a rage. “These are lies! You should not spread such lies.” But the worker quietly corrected him: “No, these are not lies.” There were thousands of workers like himself at Auschwitz, he said. “And all know it.”

  Eduard Schulte was not one of those men who could deny or hide from such a truth. On July 29, 1942—within twenty-
four hours of learning about the assembly line of death at Auschwitz—the mining executive was on a train to Zurich, determined to put the information in the hands of the Allies. The trip across the border carried a high degree of risk. And Schulte, a prosperous, fifty-one-year-old businessman with a wife and family back in Breslau, had much to lose. But the revelations about Auschwitz and the Final Solution that Schulte was carrying to Zurich filled him with an overriding sense of urgency.

  After arriving in Zurich, Schulte kept to his normal routine when doing business in Switzerland, checking into the Baur-au-Lac, a luxury hotel on the lake where he was an honored guest. He then phoned Isidor Koppelman, a Jewish investment adviser he knew whose services his company had used. Schulte was determined to get his information in the hands of international Jewish organizations, which he thought could prevail on the Allied governments to take action. The next day, meeting in his hotel room, Schulte gave Koppelman his shocking report. The investment adviser sat in silence, taking it all in. Schulte said he realized what he was reporting seemed too outrageous to believe, but it was absolutely true. And if the Allies failed to act, there would be few Jews left in Europe by the end of the year. Schulte discussed the next steps that Koppelman should take to get the word out, then checked out of the hotel and returned to Germany.

  The circuitous and troubled route that Schulte’s critical message took over the next several weeks through diplomatic and political channels reveals much about the failure of this bureaucratic labyrinth to confront the war’s soaring humanitarian crisis. And, once again, at the core of this failure was the poisonous culture of the U.S. State Department.

  Through Koppelman’s efforts, Schulte’s message was delivered to Gerhart Riegner, the young Geneva representative of the World Jewish Congress. Riegner, in turn, was intent on relaying the information to the president of the World Jewish Congress in New York—none other than Rabbi Stephen Wise, FDR’s confidant and the leading voice of alarm in the United States about the Jewish crisis. The problem for Riegner was that he was compelled to use the services of the American Legation in Bern to dispatch the confidential cable to Wise. The U.S. diplomats in Switzerland thought young Riegner seemed to be in a state of “great agitation” as he related Schulte’s story. U.S. minister to Switzerland Leland Harrison, an old colleague of Dulles’s who was soon to be reunited with him in Bern, took a decidedly skeptical view of the account; in his dispatch to Washington, Harrison dismissed it as nothing more than “war rumor inspired by fear”—although he did concede that some Jews were dying due to “physical maltreatment . . . malnutrition, and disease.”

  The State Department later sent the OSS a summary of the report that had originated with Schulte. Allen Dulles, still working out of the OSS offices in New York at the time, was one of those who received the message. The State Department flatly refused to believe Schulte’s account, calling it a “wild rumor inspired by Jewish fears.” Even Harrison’s concession that some Jews were dying as a result of the “privations” of war was stripped out of the State Department memo.

  The State Department decided not to notify Rabbi Wise—whom Foggy Bottom officials considered a thorn in their side—about his Geneva deputy’s efforts to reach him. It took a full month for Rabbi Wise to receive Riegner’s report. When the telegram finally arrived in New York on August 28, it came not through U.S. diplomatic channels, but British. The State Department also did not see fit to pass along the Schulte revelations to President Roosevelt.

  In frustration with the information bottleneck, Rabbi Wise finally held a press conference two days before Thanksgiving, announcing that Hitler had already killed about two million European Jews and had plans to exterminate the rest. The New York Times buried the story on page 10, The Washington Post on page 6. The press was reluctant to highlight such an explosive story since it lacked official government sources.

  Dulles, who was soon headed to Switzerland, could have been one of these sources for the U.S. press. While still stationed in New York, he began sending out veteran reporters—under diplomatic cover—to gather intelligence in various forward posts in the European war zone. One of these reporters, a thirty-seven-year-old, Berlin-born, multilingual, former NBC correspondent named Gerald Mayer, was sent to Bern in April 1942. Soon after Schulte’s report began circulating, Mayer also began filing stories about the Final Solution with the New York OSS office. “Germany no longer persecutes the Jews,” began Mayer’s first stark dispatch. “It is systematically exterminating them.”

  But Dulles did nothing to publicize Mayer’s reports. They, too, remained buried in the government bureaucracy. Along with the Schulte bombshell, these alarms would have made a loud noise, particularly in the New York echo chamber. They might have finally blown apart Washington’s institutional inertia on the refugee question. But this was not part of Dulles’s agenda.

  History would give Dulles one more chance to alert the world to the ongoing genocide. In Switzerland, he would hear directly from men like Schulte and others who had risked their lives to save the Jews. In Bern, the evil was not so remote—it was all around.

  After arriving in Switzerland, Dulles took his time setting up a meeting with Eduard Schulte. When the two men finally did come together in spring 1943 for a furtive meeting in Zurich, it was an amiable enough occasion; they had met fifteen years earlier, they realized, in the New York offices of Sullivan and Cromwell, which represented Anaconda Copper, a partner of Schulte’s mining firm.

  The fate of the Jewish people was still of great urgency to Schulte—likely made even more urgent by the fact that during his trips to Switzerland, he had fallen in love with a younger Jewish woman who lived in Zurich. But Dulles expressed little interest in Schulte’s information about the Final Solution. More intrigued by the political and psychological mood of the German people and how they could be won over by the Allies, Dulles asked Schulte to write up a memo on the state of the German nation. It was Hitler’s people, not his victims, whom the intelligence official thought important to understand.

  This was characteristic of Dulles’s meetings with German informants while he was stationed in Bern. Fritz Kolbe, an efficient foreign service official who kept rising to higher posts in the German government despite his stubborn refusal to join the Nazi Party, was another mole who risked his life to give the United States rare insights into the operations of the Reich. One night, with documents stuffed down the front of his pants, Kolbe crossed into Switzerland and made his way to Dulles’s residence in Bern. Like Schulte, Kolbe was well aware of the risk he was taking. After this first meeting with the American spy, Kolbe drew up his will. He also left Dulles a letter for his young son in case he was caught and executed. Dulles was untouched by Kolbe’s request. The OSS agent sized him up as “somewhat naïve and a romantic idealist,” which was not good for Kolbe, since Dulles always regarded these types as expendable.

  But Kolbe had important information to impart, and he kept risking his life to smuggle Nazi documents across the border. During another meeting with Dulles, in April 1944, Kolbe handed over a thick sheaf of Nazi cables revealing that Hungary’s Jews, who had remained secure late into the war, were about to be rounded up and deported to the death camps. Dulles’s report on this meeting was one of the few from Bern that ended up on the president’s desk in the White House. But there was nothing in Dulles’s communiqué about the imminent fate of Hungary’s Jews. And there was nothing about the possibility of bombing rail lines to the death camps—and even the camps themselves—as informants like Schulte were urging the Allies to do.

  Instead, Dulles chose to focus the president’s attention on another topic that he had discussed with Kolbe over glasses of Scotch in his drawing room. Underground Communist organizing seemed to be gaining strength in Germany as the Nazi war effort faltered, Kolbe had informed the U.S. agent. This was the emergency that Dulles thought the White House needed to hear about.

  Dulles continued to receive Nazi documents about the fate of Hungary
’s Jews from Kolbe over the next seven months. One German cable reported that 120,000 Jews in Budapest, including children considered unfit for work, were soon to be “taken to the Reich territory for work in the labor service.” The Nazis were always careful to use euphemisms like “labor service” in their communications. By this date, Washington was well aware that Hungary’s Jews were headed to Auschwitz. And yet Dulles’s communiqués to OSS headquarters used the same banal language as the Nazis, referring blandly to the “conscription” of Hungary’s Jews.

  When Dulles’s communications from Bern to Washington were declassified decades later by the government, scholars were able to decipher his wartime obsessions. Dulles’s interest was absorbed by psychological warfare tricks, such as distributing counterfeit stamps behind enemy lines depicting Hitler’s profile as a death’s skull, and other cloak-and-dagger antics. He was also deeply engaged with mapping out grand postwar strategies for Europe. But few of his more than three hundred communiqués mentioned the killing of Jews—and none carried a sense of urgency about the Final Solution.

  This glaring blank spot in Dulles’s wartime record continues to confound academic researchers decades later, though they remain reluctant to pass judgment on the legendary spy. “Why did Dulles choose not to emphasize the Holocaust in his reports to Washington?” wondered World War II historian Neal H. Petersen in his edited collection of Dulles’s OSS intelligence reports. Petersen clearly struggled to answer his own question. “Whatever his reasoning,” Petersen concluded with scholarly restraint, “his reticence on this subject is among the most controversial and least understandable aspects of his performance in Bern.”